The good news is that most likely Slovakia will pass the rescue package, all yesterday's vote was a Slovakian domestic political showdown. Mrs. Radicova, head of Slovakia's ruling coalition, offered her cabinet's resignation should the vote not pass parliament. That was the best news opposition parties could hope for to boot the current coalition government. And that's what they did, blocked the vote.
Chances are that members of the Parliament will quickly pass the Euro rescue fund vote without a majority government. Going forward, it can be either a new coalition government that will do it or a new election will be held.
Nevertheless the case represents the problem Europe faces when dealing with 17 different countries. Europe is not federalist and thus any significant decision has to be approved by each and every member of the block. This makes Greek rescue efforts even more difficult - though Europe has the means to solve it!
For now, investors will have to live with elevated market volatility. Thank you Slovakia and like-minded politicians.